Windows Embedded grew more than 200% in 2006 retail market

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Mar. 06, 2007

Windows XP Embedded shipments to North American retailers grew by 242 percent in 2006, while WEPOS (Windows Embedded for Point of Service) shipments grew 80 by percent, according to a new report from IHL Consulting Group. Last year's Windows Embedded growth trends are expected to increase even further this year.

The growth in Windows Embedded and WEPOS shipments were part of an overall eight percent increase in the PC-based point-of-sale (POS) market in 2006, IHL adds. Specialty retailers and restaurants, such as home improvement and coffee shops, comprised the larger part of the rise in shipments. Other findings include a 44 percent growth in the Linux installed base.

For 2007, overall sales of PC-based POS (point of sales) terminals in North America are expected to reach $5.8 billion, according to IHL.

WEPOS, introduced in 2004, is a retail-optimized version of Windows XP Embedded SP2 that supports both legacy and "cutting edge" retail peripherals, including the latest RFID and biometrics, according to Microsoft. Additionally, Microsoft claims it to be the first POS (point-of-sales/service) software platform to support plug-and-play peripheral functionality, "the feature most requested by retailers."

"Retailers continue to see the POS as more than just a method for accurately recording sales," says IHL President Greg Buzek. "Added functionality at the POS ... helps retailers see POS as the central system in the store, and they are willing to invest in it accordingly." Retailers' thoughts on whether or not to invest in POS systems are influenced by security and governmental action, the study says.

The 2007 North American Retail POS Terminal Study examines the installed base of POS systems shipped to retailers in North America. It projects industry trends through the year 2011. The study is conducted by IHL Consulting Group, a global research and advisory firm that serves the retail technology and retail vendor industry. The study is available for purchase at on IHL's website.

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